Marina Bay Sands arena plans costs spike

Article posted by Coliseum, November 4^th, 2024

Image: Marina Bay Sands

The cost to expand the Marina Bay Sands (MBS) resort in Singapore to include a new arena has more than doubled to $8 billion, according to parent company Las Vegas Sands.

The Straits Times said that the fourth tower, Marina Bay Sands IR2, will include 570 hotel rooms, premium gaming areas, a sky roof, a 15,000-seat entertainment arena, additional premium conference space, and new food and beverage (F&B) and nightlife offerings.

Investment in the project was initially announced in April 2019 at a cost of $3.3 billion but this has now jumped to $8 billion, LVS said in its third-quarter earnings presentation.

This includes about $4.7 billion for design and construction, $2 billion for land premiums, and $1.3 billion for pre-opening and finance costs.

LVS said it is “investing in the growth of Singapore’s high-value leisure and business tourism market” with the expansion establishing a “new ultra-luxury resort destination” that will enhance Singapore’s tourism appeal.

The Straits Times further stated that the casino giant expects to shoulder between 25- 35% of the project cost directly, with the remaining 65-75% to be covered through project financing.

LVS president and chief operating officer Patrick Dumont said, “Our goal with this tower is to make it something very different. This is going to be the most important gaming and hospitality building in the world. It’s going to be the best hotel in the world, and that’s our goal: the best service, the best experience, the best F&B.”

The expansion project aims to relieve capacity issues at Marina Bay Sands where hotel occupation rates are at 94 to 99% and exhibition halls have been at full capacity for years.

The current capacity of the resort’s 5,000 seater ballroom and outdoor event plaza for concerts limits the number of events it can stage.

The entertainment arena will overcome this constraint at Marina Bay Sands and a current gap in the market for an appropriately-sized arena that has modern amenities for artistes, individual ticket-buyers and corporate hospitality.

An arena with 15,000 seats will result in ticket prices being in line with industry norms and make the events more accessible to a larger number of people. This, in turn, will lead to an increase in the number of music events in Singapore.

The new arena isn’t just for entertainment acts – the facility is also suitable for MICE groups to host big plenary sessions and large conference groups who need to sit up to 15,000 persons in one session.

MBS received approval from the Urban Redevelopment Authority to develop the fourth tower in January 2024. The project is designed by Moshe Safdie-led Safdie Architects, the same firm responsible for the original MBS property that opened in April 2010.

The expansion project is separate from a US$1.75 billion reinvestment in the existing property, which is the largest reinvestment since MBS opened 14 years ago.

This includes the completed refurbishment of Towers 1 and 2 of the hotel, as well as new dining offerings and luxury lifestyle amenities.

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